Ex-CEO charged with multimillion-dollar embezzlement

Health care funds were for the sick, elderly and poor

(Photo courtesy of The Miami…)

February 13, 2013|By Wayne K. Roustan, Sun Sentinel

The former CEO of the Miami Beach Community Health Center was charged on Wednesday with embezzling millions of dollars from federal, state, and community funded programs, according to U.S. Attorney Wifredo A. Ferrer.

Kathryn Abbate, 64, of Hollywood, is accused of siphoning off several million dollars while she was running two health care clinics between 2008 to 2012, prosecutors said.

Abbate obtained vacation pay that was not approved or authorized by the Board of Directors. She also had the MBCHC issue more than 800 checks worth millions of dollars made payable to her for "community development." She would pocket the funds and cover up the payments with fraudulent documentation. MBCHC auditors were told one million dollars of these funds were paid to five doctors, according to court records.

The funds were supposed to cover the costs of health care for the sick, the elderly and the poor who could not afford to pay.

If convicted, Abbate faces up to 10 years in prison on the federal charges, up to 30 years on the state charges, plus probation, a fine of up to $250,000, and she may be ordered to pay restitution, prosecutors said.